West Bengal Emerging growth engine of India
September 2016 1
West Bengal – Emerging growth engine of India Booming Economic Powerhouse •
4th largest economy in India, with a population of 91.3 million
GSDP: ~US$ 137 billion (2015-16) at current prices
Growth rate: GVA 12.02% for 2015-16 (AE)
Strategic Location & Rich Cultural Heritage
Excellent domestic and
~100% villages electrified
3rd largest road network, 2nd Largest metro network
Plug-n-play Industrial Infrastructure: Numerous growth centers and industrial parks (existing and proposed)
Upcoming 6 new Theme townships
Upcoming Amritsar-Kolkata Industrial Corridor (AKIC), covering ~2,000 KM
State Capital: Kolkata (One of the 4 major metropolitan cities of the country) Spoken languages: Bengali, Hindi, English and Nepali Literacy rate: 77.1%
Gateway to South-East Asia and North-East India Well connected with the booming hubs of Asia such as Singapore, Malaysia Kolkata is referred as the “Culture/literary capital of India” Land of Mother Teresa, Rabindranath Tagore, Satyajit Ray and many more
Strategic Location international connectivity
AE: Advance Estimates 2
Excellent Connectivity – Domestic & International • Population base covered corresponds to more than 1/4th (~ 27.5 %) of India’s total population
• Caters to nearby states – Bihar, Jharkhand, Odisha, Chhattisgarh, and North-East India (including Assam) Nepal
Bhutan Bhutan North-East Bihar
Bangladesh West Bengal
• Considerable chunk of population base (0.2 Billion) resides in neighboring countries viz. Nepal, Bhutan, Myanmar & Bangladesh • Beyond these, whole of South-East Asia is easily accessible
• Vast road network of 3,15,404 KM • ~4,000 KM of railway tracks • 950 KM of Coast Line • Leading in the country in terms of spread, density, reach, etc. of National Inland Waterways Indian States West Bengal
• 2 International Airports – Kolkata and Bagdogra
Source: Census of India 2011, Worldometers 3
Leading growth engine of the country 1
Largest in India’s Power distribution, quality and availability
Country’s highest bank credit flow to MSME sector of US$ ~15 billion in the last 5 years
Source: State Budget
Highest producer of vegetables in the country
Kolkata is the first metro city in the country with Wi-Fi connectivity on 4G
Source: Department of Food Processing, WB
Second largest in terms of number of MSME enterprises (~3.7 million enterprises)
Second in Tea production after Assam. State is the land of famous Darjeeling Tea
Third largest in India in mineral production accounting for about 1/5th of total mineral production
Third largest in terms of road coverage across the country
Source: Ministry of MSME
Source: Tea Board of India
Rapidly improving governance – Unparalleled financial management in last 5 years
Tax Revenues State tax revenue more than doubled from to ~US$ 6.4 billion in 2015-16 from 2010-11
GSDP At current prices State GSDP in 2010-11 ~US$ 69 billion has doubled in 201516 to ~US$ 137 billion.
Expenditure on Physical Infra. Expenditure on Physical Infrastructure increased 4 times over 2010-11 to ~US$ 1.09 billion in 2015-16.
Credit Linkages to SHGs
Expenditure on Social Sector
Credit linkage to Self Help Groups (SHGs) has gone up more than 5 times from ~US$ 60 million in 2010-11 to US$ ~310 million in 2015-16.
State Plan Expenditure in Social Sector in 2015-16 increased 4.5 times over 2010-11 to ~US$ 4.6 billion.
Expenditure on Agri Sector Expenditure in Agriculture and Agri-Allied Sector registered a 7 fold increase over 2010-11 to ~US$ 3.5 billion in 2015-16.
Source: State Budget Speech 2016 5
Key initiatives/policies implemented on a large scale West Bengal Investment & Industrial Policy 2013 West Bengal State Support for Industries Scheme, 2013
State Policy on Public Private Partnership (PPP), 2012
Policy on Information & Communication Technology, 2012 ICT Incentive Scheme, 2012
MSME Policy, 2013-2018
Textile Policy, 2013-2018
West Bengal Incentive Scheme, 2015 for Tourism Units
Design Policy, 2016
Policy on Co-generation & Generation of Electricity from Renewable Sources of Energy, 2012
West Bengal Fisheries Investment Policy 2015 in Fisheries Sector
Start-Up Policy, 2016-2021
Emerging Startup culture in the state • Start-Up Policy 2016-2021: — Entrepreneurship Development Centre Network (EDCN) created in association with universities and leading higher education institutes
Citizen centric e-Governance & mobileGovernance
NASSCOM Start-up Warehouse: For budding entrepreneurs
4 Green Cities to be developed: New Town, Salt lake, Haldia, Durgapur
Emerging satellite IT Hub
2 Electronic Manufacturing Clusters (EMCs) upcoming
Analytics City at Kalyani
Fully Wi-Fi Metro & Railway Station and other city Locations
10 existing IT Parks and 2 Hardware Parks upcoming
— Digital platform startupbengal.in launched to connect all the ecosystem stakeholders — In partnership with state government, incubation Centre set up by Nasscom1: • Already incubated 23 start-ups in 2 batches • 3rd batch with 7 companies is underway • Sector agnostic MSME Venture Capital Fund set up with a corpus of INR 200 Crore
Source 1: http://www.business-standard.com/article/economy-policy/west-bengal-getting-start-up-friendly-nasscom-116071500901_1.html 7
Paradigm Shift in Labor Policies • No Bandh: State moved to a ‘No Bandh’ (meaning there are no strikes/ lockouts) regime to ensure that the companies, businesses, offices and public are not disturbed and to ensure a disciplined work atmosphere in the state.
E-based Employment Bank
Online application for Factory License
Single Inspection strategy
Grievance redressal mechanism
• Zero Mandays Lost: Man‐days lost drastically reduced in from 6.5 million in FY 2010‐11 to 5,200 to almost nil in 2015-16 • Plethora of new initiatives: Additionally the State has taken a slew of initiatives that is heralding new era in labor management
Time bound services under Right to Services Act
Source: Annual Report Labor in West Bengal 2014-15 8
Industrial promotion assistance – Incentives available
• • •
Large scale industries
Investment Industrial Policy West Bengal, 2013
West Bengal MSME Policy, 2013-18
West Bengal ICT Incentive Scheme, 2012
Reimbursement of 80%-90% of VAT paid for a period ranging from 815 years Reimbursement of CST paid for a period of 3 years Waiver of Electricity Duty Incentive linked with employment generation
Stamp Duty Exemption
Waiver of Land Conversion Fee
Anchor Unit Subsidy
Financial assistance towards Patent registration
Customized packages for mega projects
State Capital Investment Subsidy
State Capital Investment Subsidy
Interest Subsidy on Term Loan
Waiver of Electricity Duty, Power Subsidy
Waiver of Electricity Duty
Subsidy for employment generation
Employment Generation Subsidy
Subsidy for Quality Improvement
Subsidy on Patent Registration
Refund of Stamp Duty & Registration Fees
Incentives for women, minorities, SC/ST and Self Help Group (SHG)
Bouquet of additional incentive for startup companies.
Initiatives of government for improving ease of doing business Business Process Reengineering - Simplified Tax Regime and e-Governance towards improved service delivery
Simplified registration to get incentives for industries - No of documents required for Registration Certificate (Part-I) reduced to 7 from 20; for Part-II, to 8 from 16
Mandatory E-registration - Only state to have made eregistration mandatory along with introduction of dematerialized Registration Certificate.
Single Window Service under Shilpa Sathi for large industries and MSME Facilitation Centers (MFC) in each district for MSMEs
Single Tax ID - One of the three States, where single Tax ID (Registration number) is allotted to cover registration under various tax laws such as VAT, CST, and Professional Tax E-Sales Tax Deduction at Source (TDS) Service
Online property registration application and payment
Digitization of land records
Quick disposal of VAT refund
Simplification of regulatory burden initiated for environmental procedures
Clear timelines for connections of basic utilities defined
E-Way bill - Introduction of on-line generation of a single document dematerialized waybill
E-filing Service center and Helpline number
WBIDC to act as Single Window for all clearances for Private Equity/Venture Capital Players
Major Investment Activity in the region Till 2015, over INR 843 Crore have been invested by PE firms, angel funds, start-ups, VCs, and others after current government came to power1 Top Active Funds in West Bengal
Top Active Funds in West Bengal
KKR India Advisors Pvt. Ltd.
Active investments in both Public and Private companies
Sequoia Capital India Advisors Pvt. Ltd.
Blackstone Advisors India Pvt. Ltd.
ChrysCapital Investment Advisors India Pvt. Ltd.
Companies’ turnover ranging from INR 56 billion to INR 10 million • Simplex Infrastructures Ltd.
Citi Venture Capital International
India Value Fund Advisors Pvt. Ltd.
India Equity Partners Fund Advisors Pvt. Ltd.
Everstone Capital Management
10. Baring Private Equity Partners India Ltd. 11. CLSA Private Equity Management Ltd.
• Magma Fincorp Ltd. • Hindusthan National Glass and Industries Ltd. • Himadri Chemicals & Industries • Jai Balaji Industries Ltd. • Jay Shree Tea and Industries Ltd. • Khadim India Ltd.
Top Sectors attracting Investments
12. Aavishkaar Venture Management Services Pvt. Ltd.
13. Adharshila Venture Capital Fund Ltd. 14. AGI Services Ltd. 15. Fairwinds Private Equity 16. Tano India Advisors Pvt. Ltd.
• Infrastructure: Construction & Engineering • Healthcare • Retail
• Iron and Steel • Financial Services • Education
Source 1: http://economictimes.indiatimes.com/small-biz/startups/startups-private-equity-firms-invested-rs-843-crore-in-west-bengal-after-mamata-banerjee-came-into-poweramit-mitra/articleshow/50743368.cms 11
Bengal, a hot bed of opportunities – Some upcoming major investments HPCL to set up Asia's biggest LPG bottling plant in WB
Binani Group firms up plans to invest INR 10K Cr in Bengal
Bhor Sagar Port
• HPCL is setting up a 250 TMT p.a., 72-head carousel, capacity bottling plant at Panagarh, WB.
• Co has lined up investment in cement, power and infrastructure, including ports.
• Proposed Deep Sea major port with capacity to handle over 50 MMTPA
• Will cater to around 12 lakh customers
• State has already offered land to the group for its proposed ventures
• Detailed project reports for rail, road connectivity are being finalized
Emami Agrotech to invest INR 300 Cr in Haldia facility
Deep Sea Port at Tajpur
• Incorporation of SPV already done
• With capacity to produce 4,200 cylinder p.a. on a single carousel.
Exide to invest INR 700 Cr in Haldia plant • Leading storage battery maker of the country, is planning to make Haldia the hub for its new generation battery project
• Emami Group plans to expand its India’s edible oil business market share • Will invest to expand the refining capacity of its edible oil facility at Haldia, WB
• Proposed deep sea port near Tajpur, Purba Medinipur district to be developed on PPP basis by the State • With Capacity to handle over 50 MMTPA capacity
More Investment Opportunities 12
Upcoming 6 New Theme Townships in West Bengal Government proposes to develop six new Township Projects on Government land. The townships have been selected by the Government based on its strategic importance, feasibility factors and availability of land.
Health and Education City Earmarked for its solitude and location. Also has the potential for becoming new Health Hub of the North East
Dabgram (Teesta) Sports City Sporting activities thrive here making it the sports hub of West Bengal
Industrial Township Recognized for established industrial resources
Geriartric and Wellness Township Baruipur is far from the maddening crowd and in the midst of expanding greens. Ideal location for convalescence
Baruipur (Uttam City)
Dumurjala (Sports City)
Culture Hub Culture Hub of West Bengal with Shantiniketan and a heritage steeped in literature and music
Analytics City Huge investment potential for setting up industries
Current major players in West Bengal